Kuaishou-W's stock price surged 9.88% during intraday trading on Tuesday, marking a significant upward movement for the company's shares.
The sharp increase appears to be driven by market reports indicating that Kuaishou is exploring a spinoff and separate listing of its AI video generation platform, Kling AI, by 2027. According to sources, the company has initiated discussions for a pre-IPO funding round valuing Kling AI at approximately $20 billion.
Kling AI has demonstrated strong commercial progress, generating total revenue of approximately $1.5 billion in 2025 and reaching an annualized revenue run rate exceeding $3 billion by January 2026. The potential spinoff would allow Kuaishou to offload high research and development costs associated with the capital-intensive video generation model while potentially capturing valuation premiums during the current AI investment boom.